At Last ... Innovation for Rates and Rules

Automation in the insurance industry is driven by business needs – the need to grow, to reduce cost by increasing productivity, to stay competitive with more appealing products and better customer service, to manage loss exposure and expenses, and to improve profitability. In today’s world, where communication and information technologies are exploding, these primary business needs are taking on a new, heightened sense of urgency.

Insurers looking to successfully stay in the game over the long haul must create a flexible, responsive business environment – one that can sense change in the environment and respond accordingly. Opportunities arise quickly and they are gone just as quickly. Communication and information technologies are exploding and putting consumers in the driver’s seat with the gas pedal floored. Insurers are progressively turning to automation as they look for ways to grow, reduce cost, rapidly bring more appealing products to market, deliver a better customer experience, keep loss expense and exposure under control, and increase profits. Put it all together and it is a very tall order demanding a full set of sense-and-respond capabilities.

According to recent SMA research, insurers are focused on strategic initiatives that address product mix, growth, and profit. The majority report that profitable growth is a priority objective that has leadership consensus throughout the organization. However, many find it a formidable challenge to make it happen. One of the central obstacles to progress sits squarely in the land of rates and rules. Keeping up with ISO content is expensive. The effort requires major resource and time commitment. For most insurers, staying on top of rate and rule changes, even those that just apply to existing business offerings, is a real challenge. It can hamper the organization’s ability to rapidly respond to market needs. It can impede the organization’s ability to capitalize on ripe opportunities.